Question 1

Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums (not through an exchange) . Under which of the following alternative conditions can Hector deduct the cost of the premiums for AGI?

Accepted Answer

A)   Hector chose not to participate in the employer-sponsored plan of his spouse.
B)   Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.
C)   Neither Hector nor his spouse participates in an employer-sponsored plan although both are eligible to participate in a plan.
D)   Hector can deduct the health insurance premiums regardless of the insurance status of his spouse.
E)   None of these - health insurance premiums can only be deducted as an itemized deduction.F) B) and C)
G) B) and E)

Question 2

Scott is a self-employed plumber and his wife, Emily, is a full-time employee for the University. Emily has health insurance from a qualified plan provided by the University, but Scott has chosen to purchase his own health insurance rather than participate in Emily's plan. Besides paying $5,400 for his health insurance premiums, Scott also pays the following expenses associated with his plumbing business: $\begin{array}{llcc}
  \text { Plumbing tools and supplies } & \$1,300 \
 \text {Rent on Scott's plumbing shop  } &6,250\
 \text { Transportation between Scott's shop and various job sites } &500\
 \text {Plumber's uniform  } &50\
 \text {Plumbing truck rental  } &7,200\
 \text {Self employment tax ( 1 / 2 is employer share)  } &400\
\end{array}$
 What is the amount of deductions for AGI that Scott can claim this year (2013)?

Accepted Answer

The answer of Scott is a self-employed plumber and his...

Question 3

Which of the following taxes will not qualify as an itemized deduction?

Accepted Answer

A)   personal property taxes assessed on the value of specific property.
B)   state, local, and foreign income taxes.
C)   real estate taxes on a residence.
D)   gasoline taxes on personal travel.
E)   None of these qualifies as an itemized deduction.F) A) and E)
G) B) and E)

Question 4

Han is a self-employed carpenter and his wife, Christine, works full-time as a grade school teacher. Han paid $525 for carpentry tools and supplies, and Christine paid $3,600 as her share of health insurance premiums for Han and herself in a qualified plan provided by the school district (not through an exchange) . Which of the following is a true statement?

Accepted Answer

A)   The tools and supplies are deductible for AGI while the health insurance is an itemized deduction.
B)   Both expenditures are deductible for AGI.
C)   The tools and supplies are an itemized deduction but the health insurance is deductible for AGI.
D)   Both expenditures are itemized deductions.
E)   Neither of the expenditures is deductible.F) A) and B)
G) None of the above

Question 5

Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a true statement?

Accepted Answer

A)   Expenses associated with a "hobby" are never deductible.
B)   The deductibility of an activity's expenses in excess of revenues depends upon whether the activity is primarily profit-motivated or a hobby as determined by facts and circumstances.
C)   Taxpayers engaged in a "hobby" are always presumed to be motivated by profit.
D)   The regulations do not provide any guidance for determining whether an activity is profit motivated.
E)   All of these are true.F) C) and D)
G) A) and B)

Question 7

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2014?

Accepted Answer

A)   $10,650
B)   $9,100
C)   $10,300
D)   $12,200
E)   $1,550.F) C) and D)
G) B) and E)

Question 8

Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Mason deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2013 rules apply for purposes of the qualified education expense deduction) ?

Accepted Answer

A)   $5,000
B)   $4,000
C)   $2,000
D)   $0
E)   None of these.F) All of the above
G) C) and D)

Question 9

Which of the following is a true statement?

Accepted Answer

A)   Fees for investment advice are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
B)   Unreimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
C)   Fees for tax preparation are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
D)   Reimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation unless the employer's reimbursement plan qualifies as an accountable plan.
E)   All of these are true.F) C) and E)
G) A) and C)

Question 10

Which of the following is a true statement?

Accepted Answer

A)   A taxpayer can deduct medical expenses incurred for members of his family who are dependents.
B)   A taxpayer can deduct medical expenses incurred for a qualified relative even if the relative does not meet the gross income test.
C)   A divorced taxpayer can deduct medical expenses incurred for a child even if the child is claimed as a dependent by the former spouse.
D)   Deductible medical expenses include long-term care services for disabled spouses and dependents.
E)   All of these are true.F) A) and D)
G) A) and C)

Question 11

Erika (age 67) was hospitalized with injuries from an auto accident this year. She incurred the following expenses from the accident: $\begin{array}{llcc}
  \text {Hospital charges  } & \$3,280 \
 \text { Prescription medicine } &510\
 \text { Doctor's fees } &1,240\
\end{array}$
 In addition, Erika's auto was completely destroyed in the accident. She bought the car several years ago for $18,000 and it was worth $4,700 at the time of the accident. What are Erika's itemized deductions this year if she was uninsured and her AGI is $40,000?

Accepted Answer

$2,630 consisting of...

Question 12

Larry recorded the following donations this year: $500 cash to a family in need
$2,400 to a church
$500 cash to a political campaign
To the Salvation Army household items that originally cost $1,200 but are worth $300.
What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Accepted Answer

A)   $2,900
B)   $1,000
C)   $2,700
D)   $4,600
E)   None of theseF) A) and B)
G) C) and D)

Question 13

Taxpayers traveling for the primary purpose of receiving essential and deductible medical care may deduct the cost of travel.

Accepted Answer

A) True 
 B)False

Question 14

Rental or royalty expenses are deductible "for" AGI.

Accepted Answer

A) True 
 B)False

Exam 6: Individual Deductions

Rental or royalty expenses are deductible "for" AGI.

Correct Answer
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Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Mason deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2013 rules apply for purposes of the qualified education expense deduction) ?

Correct Answer
verified

Larry recorded the following donations this year: $500 cash to a family in need $2,400 to a church $500 cash to a political campaign To the Salvation Army household items that originally cost $1,200 but are worth $300. What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Correct Answer
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Correct Answer
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Which of the following taxes will not qualify as an itemized deduction?

Correct Answer
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Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums (not through an exchange) . Under which of the following alternative conditions can Hector deduct the cost of the premiums for AGI?

Correct Answer
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Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
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Correct Answer
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$2,630 consisting of...
View Answer

Taxpayers traveling for the primary purpose of receiving essential and deductible medical care may deduct the cost of travel.

Correct Answer
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Correct Answer
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Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2014?

Correct Answer
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Which of the following is a true statement?

Correct Answer
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Which of the following is a true statement?

Correct Answer
verified

Exam 6: Individual Deductions

Rental or royalty expenses are deductible "for" AGI.

Correct AnswerverifiedShow Answer

Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Mason deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2013 rules apply for purposes of the qualified education expense deduction) ?

Correct AnswerverifiedShow Answer

Larry recorded the following donations this year: $500 cash to a family in need $2,400 to a church $500 cash to a political campaign To the Salvation Army household items that originally cost $1,200 but are worth $300. What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following taxes will not qualify as an itemized deduction?

Correct AnswerverifiedShow Answer

Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums (not through an exchange) . Under which of the following alternative conditions can Hector deduct the cost of the premiums for AGI?

Correct AnswerverifiedShow Answer

Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Correct Answerverified$2,630 consisting of...View AnswerShow Answer

Taxpayers traveling for the primary purpose of receiving essential and deductible medical care may deduct the cost of travel.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2014?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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$2,630 consisting of...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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